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Forecasting conepts of PPC

Forecasting conepts of PPC

FORECASTONG

A forecast is an estimate of the level demand to the expected for a production of several products for some period of time in the future. Forecast is made of sales ( in Rs.) or physical units under a proposed marketing or program & under an assumed set of economic & other force outside the unit system). Forecast should cover a time period at least as long as the period of time required to make the decision & to put that decision into effect.

IMPORTANCE OF FORECASTING

There are 3 major purposes.
1) To determine necessity for & the size of plant expansion ( Facility Forecast )
2) To determine intermediate planning for existing products to be manufactured with existing facilities.
3) To determine Short-time scheduling of existing products to be manufactured on existing equipments ( Product Forecast )

Section 3

Section 4

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